I hope the right hon. Gentleman can forgive me—Clywd West is the better of the Clywdian constituencies. He mentioned how dominant the larger grocery retailers are and that the UK food retail market is dominated by the nine to 14 largest supermarkets. They are the ones that seem to be deploying the most aggressive practices, but we also need to remember that consolidation in the processing sector over a decade or more means that it has an important role when it comes to buying directly from farmers. Many farmers in my constituency will not have a direct relationship with the supermarkets; they will sell their produce to an abattoir or to other processors, so it is important that those are also brought into scope. That link in the supply chain should be covered by regulation, so that we can ensure that some of these unfair practices are not deployed there as well.
I refer Members to the example of the dairy industry, where many people have suffered from consolidation. Consolidation in the processing sector has its benefits, but one downside is that it often leaves primary producers with less choice about whom to sell their produce to, and the problem is particularly acute in the dairy industry. If we were to extend the code, as many Members have called for this afternoon, it would not only ensure that we have a greater balance of power across the supply chain, but help to balance some of the risks throughout the supply chain—something other Members have mentioned.
Why should we be so concerned about this issue? The fact of the matter is that many of these awful practices are causing such strain for farmers across the UK that far too many are considering whether they have a future in the industry. Some 25% of dairy farmers are considering whether they will still be milking in a year’s time. The impact that that has on not just our productive capacity but our food security is quite severe. I agree with the hon. Member for Totnes that this should be a cause for real concern for Members of all political parties because, in a world with a changing climate, many growers and producers overseas will not be in a position to fill the gap if we lose our domestic productive capacity.
I will end by reiterating the call from the petitioners and the Riverford farming campaign not only to strengthen the Groceries Code Adjudicator so that it is empowered to take effective and, if needs be, punitive action against those committing unfair trading practices in the supply chain, but to extend the groceries supply code of practice to intermediaries as well. It beggars belief that we are here debating the importance and urgency of enshrining the simple principle that retailers should give suppliers certainty that they will buy what they agreed to buy, pay what they agreed to pay and pay on time. If we could make swift progress on this issue, it would go some way towards addressing a key concern for many of our farmers, and especially those in Ceredigion, about the future. In so doing, it would ensure that we have the productive capacity in the United Kingdom to safeguard our food security for the future.
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